Oil stabilizes after a volatile week

Oil prices are on track for the biggest weekly drop since March, although prices started to rebound on Friday morning as optimism slowly returned to markets.

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Friday, May 21, 2021

Oil is heading for the biggest weekly decline since March, after three consecutive days of huge losses. Still, oil recouped some losses on Friday, rebounding slightly after being absorbed by a broader sell-off in commodities.

The IEA says there are no new fossil fuels. The IEA’s Net-Zero report fell like a bomb midweek. The IEA said that to achieve net zero there should be no new oil, gas and coal projects. There was no shortage of supporters and critics, but either way the report could affecting how investors think about oil.

Asia is snubbing the IEA report. “The report provides a suggestion on how the world can reduce greenhouse gas emissions to net zero by 2050, but this is not necessarily in line with Japanese government policy,” an official said. Japanese. Reuters. Philippine officials have also said no new investment in fossil fuels will be a setback.

OPEC warns against IEA report. “The claim that no new oil and gas investment is needed after 2021 stands in stark contrast to conclusions often expressed in other IEA reports and could be the source of potential instability in oil markets if it is is followed by some investors ”, OPEC mentionned.

The United States and Iran are close to a deal. The United States and Iran have outlined a deal to restore membership to the 2015 nuclear deal, which include the lifting of sanctions. “We can now say that we have reached a framework or a structure of agreement,” Iranian Deputy Foreign Minister Abbas Araqchi said, according to the report. Argus. Oil prices have fallen more than 2% on the news.

Qatar monopolizes the LNG market. Qatar is increasing its LNG supply and lowering prices, excluding LNG projects elsewhere. “Qatar’s expansion plan is so huge that there are questions about the need for other sourcing options,” said Julien Hoarau, Director of EnergyScan. Bloomberg. “He’s still number one, but the United States has never been so close, so Qatar had to move if they were to maintain their leadership position.” Qatar has the cheapest LNG in the world. Bloomberg estimates that 10 LNG projects in the United States may struggle to secure financing.

Another year of canceled LNG projects. Reuters reports that 2021 is shaping up to be another year in which many LNG projects are postponed or canceled.

The demand for oil in Europe is increasing. European traffic is approaching prepandemic levels as vaccinations improve and the latest wave of Covid-19 recedes.

Related: Russia Gets Big Momentum To Surpass Peak Oil Demand

India asks LNG suppliers to delay deliveries. Slammed by Covid-19, Indian LNG importers ask suppliers to postpone deliveries scheduled for May and June. In addition, India’s disappearance from the spot market – due to the country’s oversupply – could push down LNG spot prices.

Ford’s electric F-150. Ford (NYSE: F) announced details of the new electric F-150. The pickup truck has been the best-selling vehicle in the country for decades, so a fully electric version will be eagerly awaited. The new F-150 “Lightning” is priced from $ 40,000, a range of 230 miles, or a 300-mile option. More remarkable is the fact that the battery can provide back-up power to homes in the event of a power failure for three days. Ford secure 20,000 deposits of interested buyers in less than 12 hours.

Shell sells a stake in the Philippine gas field. Royal Dutch Shell (NYSE: RDS.A) is sale its 45% stake in the Malampaya gas field in the Philippines for 460 million dollars.

Large methane plume found in Canadian shale. Satellites have detected a large plume of methane over the Duverney Shale Basin in Canada, adding to growing concerns about methane pollution from oil and gas operations.

Colonial CEO explains the ransom decision. Colonial pipeline paid a ransom of $ 4.4 million to hackers. The CEO of the company Explain her decision.

BP is recruiting for offshore wind. In a sign that BP (NYSE: BP) takes offshore wind seriously, it aims to hire 100 people in the UK, and that number will double by the end of the year. “This is the first step in terms of building our capacity in this space,” said a BP official. mentionned.

Biden cancels penalties on Nord Stream 2 sanctions. The Biden administration has said that blocking the Nord Stream 2 pipeline, which is over 95% complete, has come a long way. The United States has waived sanctions on the project in order to avoid burning goodwill with Germany. The pipeline is expected to be completed later this year. “It’s a good time not only for Nord Stream 2, but also for US-German and US-Russian relations,” said Katja Yafimava, senior researcher at the Oxford Institute for Energy Studies.

BP and Eni plan to merge in Angola. BP (NYSE: BP) and Eni (NYSE: E) are in talks with merge their oil and gas operations in Angola.

Executive decree on climate financial risk. A highly anticipated executive order by President Biden was signed on Thursday, directing financial regulators from several agencies to start plans to assess the financial risk associated with climate change.

American shale sticks with restraint. Energy intelligence Analysis notes that American shale drillers are sticking to their word to keep spending under control, even in the face of rising oil prices. The top 20 shale companies thus totaled $ 4.4 billion in free cash flow.

California will require Uber and Lyft to go electric. California regulators adopted rules Thursday to require that 90% of kilometers driven come from electric vehicles by 2030.

By Tom Kool for Oil Octobers

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